A proposed deal to resolve the Drumcree parading dispute is "not acceptable", DUP MP Carla Lockhart has said.
Her assessment came after a representative of the Garvaghy Road residents said they would accept a document setting out a resolution if the Orange Order also did so.
Breandán Mac Cionnaith was speaking following a meeting with Northern Ireland Secretary Sir Chris Bryant at Hillsborough Castle.
Residents' conditional acceptance
Sir Chris has been trying to strike a compromise deal between the two sides of the stand-off.
Mr Mac Cionnaith said: "Obviously I can't divulge what is in it but if it's accepted by the Orange Order, it will be accepted by us".
Portadown Orange Order district master Nigel Dawson declined to comment on the paper as he left the castle on Wednesday evening.
Orange Order opposition
However, Ms Lockhart, who spoke at a loyalist rally in Portadown in support of the Orangemen later in the evening, voiced opposition to the proposal.
The Upper Bann MP told the Press Association: "I can assure you, you'll hear more from the Orange Order – but what's on the table is not acceptable."
She later added: "There'll be no capitulation on the part of the Portadown district."
"They will not accept a deal where they walk away."
Loyalist activist Jamie Bryson, who is legal adviser to the Portadown Orangemen, also pushed back on suggestions an agreement between the two sides was close, insisting the loyal order members are "not doing any deal".
"We have been engaged in a talks process with the Secretary of State and the Government, that is true," he told the same rally.
"What is absolutely not true is the Portadown District are not doing any deal, there is no document on the table."
"And Portadown District would not be doing any deal which doesn't deliver on the fundamental legal principle and the fundamental legal principle is this – that the Portadown District will walk the Garvaghy Road."
Talks continue
Leaving Hillsborough on Wednesday afternoon, Sir Chris suggested a deal was "tantalisingly close", but he also warned he was not sure whether it will be possible.
The Drumcree parading dispute, which was associated with violent disorder during the Troubles, has been reignited after the Parades Commission adjudication body granted permission for a limited Orange Order parade down the Garvaghy Road for the first time in almost 30 years.
It was supposed to take place at 8am on Sunday morning but loyal order members were halted by police after more than 1,000 people gathered on the Garvaghy Road to block the route.
Orangemen have been waiting since Sunday to conduct the parade. They have tried on several occasions to start the procession, but have been prevented by police each time.
Earlier, Northern Ireland's police chief warned that "mob rule" must not be allowed to win as he stressed the need to find a peaceful resolution to the parade stand-off, which is in its fourth day.
Jon Boutcher said he would continue to seek a way to facilitate the Orange Order march down the predominantly nationalist Garvaghy Road but he made clear he is not prepared to do it at any cost, highlighting his overriding responsibility is keeping people safe.
It came as Northern Ireland's First Minister Michelle O'Neill returned to the Garvaghy Road to give further support to protesters.
The Sinn Féin vice president has defended her attendance at a large protest on Sunday which police have described as unlawful, stating "there are times in life you have to do the right thing".
After hosting a third day of meetings at Hillsborough, Sir Chris said they had not reached the end of the process yet.
"I'm not sure whether it's possible and I would just appeal to everybody, including the wider community, not just the people I have been meeting in the room, that people are going to have to search deep in their souls for another chunk of compromise if we're going to get to a successful long-term resolution of the situation," he said.
"I personally – and everybody in my team – is personally working flat-out to try and get to a successful resolution, and I think that is tantalisingly close if everybody can just go that extra mile."
Meanwhile, Mr Boutcher also confirmed there is a large-scale criminal investigation under way into a mass unlawful protest that blocked the Garvaghy Road on Sunday in an attempt to prevent the parade going ahead.
Several high-profile politicians, including Ms O'Neill, participated in the unnotified protest.
She returned to the scene on Wednesday with her party leader Mary Lou McDonald and met a group of around 150 protesters who are still at the site.
First Minister defends choice
Asked if she had broken the law, Ms O'Neill said: "I accept that I made a choice, a choice to stand with the residents of the Garvaghy Road."
"It is a choice I will continue to make."
"This is very clearly a community which feels under siege, a community that has been put in reverse and retraumatised in terms of what happened 28 years ago."
"This was an issue that was resolved."
She added: "Their ask is a very moderate ask, to live free from fear and intimidation and I support their call for that and I stand with them."
Ms O'Neill said: "I stand over my choice. There are times in life you have to do the right thing and the right thing is to stand here with these residents."
"I will not let these people down."
The permission to parade along the route was confirmed after three court challenges across Saturday and into the early hours of Sunday.
The dispute is now set to return to the courts, with lawyers for the Garvaghy Road residents having launched a fresh legal bid to try to prevent the controversial march from going ahead.
Their latest legal challenge, which argues the Parades Commission "materially misdirected itself" on the police assessment of the potential for disorder, is set to be heard on Friday.
Mr Boutcher's offer to meet representatives on both sides of the dispute comes as Sir Chris continues talks with Orangemen and nationalist residents at Hillsborough Castle.
Mr Boutcher said: "My officers and our mutual aid colleagues have and will continue to police Drumcree and our communities independently and impartially."
"The principle objective in achieving the Parades Commission determination is to do so peacefully."
"People shouting at me has absolutely no effect on my judgment and they would do well to learn that. My overriding responsibility is to keep people safe."
"We continue to seek to achieve compliance with the Parades Commission determination, obtained by the Orange Order, and have created the space for the ongoing talks at Hillsborough with the parties involved."
"To be clear, the upholding of the Parades Commission determination does not come at any cost."
"The outstanding officers of the PSNI and our mutual aid colleagues will not allow society to implode into violent disorder and mob rule must not be allowed to win."
"A large-scale criminal investigation is under way regarding unlawful protest on the Garvaghy Road. I have given a clear direction regarding prioritising the evidence gathering and a criminal justice process."
"We all need to focus our efforts on resolving this situation once and for all. I will not be part of this society moving backwards."
On Wednesday morning, TUV MLA Timothy Gaston said he had tabled exclusion motions at the Northern Ireland Assembly for Ms O'Neill and other Sinn Féin ministers in the Stormont Executive.
He claimed they "no longer enjoy the confidence of the Assembly" after "participating in the unlawful protest on the Garvaghy Road on September 27 which prevented a permitted parade from proceeding".
The DUP and Ulster Unionist parties have said they will back the motion.
He is calling for them to be excluded from holding office as a minister or junior minister for a period of 12 months.
Under parading laws in Northern Ireland, protests must be notified to, and approved by, the Parades Commission adjudication body.
The PSNI has confirmed Sunday's protest was unnotified and therefore unlawful.